An Introduction to Programming in AmiBroker
In June we will be conducting two in-depth courses on how to program in AmiBroker . These programming courses will be led by Matt Radtke, Director of Research at Connors Research. Matt is an expert AmiBroker programmer, and has a wealth of experience creating AmiBroker scans and backtests to simulate a wide variety of trading […]
Understanding The 3 Types of Volatility
With recent market activity reminding traders that prices can go down as well as up, we’re suddenly starting to hear more about volatility again. Today we’ll discuss the different types of volatility related to stocks and ETFs. The first type of volatility is Historical Volatility, or HV, which may also be referred to as Realized […]
Compare ConnorsRSI to RSI2
By now you’ve probably heard of ConnorsRSI, a composite indicator that we developed recently. If not, you can download a free guidebook on the topic here: An Introduction to ConnorsRSI. Learn everything about ConnorsRSI with our introductory guidebook – including formula & trading strategies. You may also know that we’ve been methodically replacing the 2-period […]
10 Considerations When Selecting an Online Broker
Whether you’re opening a new trading account or are just curious about what other brokers may provide, it’s always a good idea to take these core considerations into account when selecting an online broker.
How to Trade Options Using Intraday ConnorsRSI
When we trade stocks, we make money when we correctly predict the direction that the stock is going to move. When we trade options, we need to be directionally correct within a specified timeframe. In other words, we need the underlying stock to move in the right direction between now and the expiration of the […]
How to Short Stocks in a Low-Volatility Environment
Recently we’ve been working on a strategy for shorting stocks using ConnorsRSI as one of the primary indicators. You can find complete details in one of our quantified Strategy Guidebook: Short Selling Stocks with ConnorsRSI, but the basic idea is to use a limit order to short stocks that have achieved both an oversold ConnorsRSI […]
How to Trade S&P 500 Stocks with Bollinger Bands®
In an earlier newsletter we discussed some of the advantages of using the members of the S&P 500 as your trading universe. One effective way to trade S&P 500 stocks is by using a strategy based on Bollinger Bands ®, like the one we described in the Strategy Guidebook Trading with Bollinger Bands ® – […]
Learning From The First Pullback Strategy
A few months ago the research team worked on a strategy that we named First Pullback. As often happens with our research, the strategy performed moderately well in our back testing without truly distinguishing itself compared to other strategies that we’ve published. Today’s article will present the rules for the First Pullback strategy. In its […]
The Power of Trading The S&P 500
Recently we’ve been working on an S&P 500 mean reversion strategy. The entry rules are very straightforward: When a member of the S&P 500 closes with a low ConnorsRSI value and satisfies one other filter, buy the next day on a limit order. The exit rule is even simpler: sell when ConnorsRSI closes above a […]
Why Investing in Low Volatility Stocks is a Superior Strategy
In May of 2011, Invesco introduced the PowerShares S&P 500 Low Volatility ETF (SPLV). At least four more low volatility ETFs were created during 2011, including USMV, EEMV, ACWV and EFAV. Since the start of 2012 another seven such ETFs have entered the market: EELV, IDLV, PHDG, XSLV, LGLV, SMLV, and XMLV. You may wonder […]
The Most Popular Technical Indicators
Last month our research team came across a short article titled “What Are The Most Popular Technical Indicators Worldwide?” No one on the team was surprised to see that the Relative Strength Index (RSI) was far and away the most-used indicator other than a simple moving average. We’ve been publishing strategies for years that rely […]
Understanding Stop Orders: Part 2
In our previous article we discussed the four basic types of stop orders: Stop Loss Stop Limit Trailing Stop Loss Trailing Stop Limit In addition to these order types, there are many other “logical stop orders” that you can implement as part of your trading strategy, such as exiting if the stock price falls below […]